Sales Up, Profit Down at JK Tyre in Q1 2009

JK Tyre has reported net sales of Rs 8.51 billion (£115.0 million) for the three-month period ending March 31, 2009. This figure represents a 254 per cent increase over the Rs 8.30 billion (£112.1 million) recorded in the corresponding period last year. Operating income in the first quarter of 2009 was Rs 8.54 billion (£115.4 million), an increase of 2.45 per cent. Net profit, at Rs 1.36 billion (£18.4 million), decreased 40.7 per cent year-on-year.

The company recently indicated good progress on its plans to supply earthmoving equipment manufacturer Bharat Earth Movers Ltd. The first stage of the project to establish a facility in the Indian city of Mysore is scheduled for completion in March 2010 and will give a capacity of 4,000 OTR tyres per annum, bringing the company’s total OTR production capacity to 39,000 units. The company also plans to further expand OTR capacity by March 2011, adding a further 5,000 units to cater to export markets.